HR & Employees

Leave types

Create and manage different categories of leave (vacation, sick, unpaid, etc.) for your organization.

Jul 11, 2026

Leave types define the different reasons or categories of absence an employee can request (e.g., annual leave, sick leave, unpaid leave, maternity leave). Each leave type can have its own accrual rules, approval workflow, and impact on payroll.

Before you start

  • You need HR admin permissions to create and configure leave types.
  • Understand your organization's leave policies (how many days per year, eligibility, whether paid or unpaid).
  • Decide if different employee roles or departments have different leave entitlements (e.g., senior staff get more annual leave).

Steps

  1. Go to Settings → HR → Leave Types (or Settings → Leave & Payroll → Leave Types). Open in Usystems

  2. Click New Leave Type or the + Add button.

  3. Enter a name for the leave type (e.g., "Annual Leave", "Sick Leave", "Unpaid Leave").

  4. Optionally enter a description or code to help identify the type.

  5. Set the annual entitlement or accrual method:

    • If it's a fixed amount, enter the number of days per year (e.g., 20 days of annual leave).
    • If it accrues over time, specify the accrual rate (e.g., 1.67 days per month).
  6. Choose whether this leave type is paid or unpaid:

    • Paid leave: The employee is paid their normal salary during leave (e.g., annual, sick).
    • Unpaid leave: No salary is paid for these days.
  7. Set any approval requirements:

    • Does a manager need to approve leave of this type?
    • Are there restrictions (e.g., maximum consecutive days, notice period)?
  8. If applicable, select which departments or employee grades can use this leave type.

  9. Click Save.

The leave type is now available for employees to request and managers to approve.

Tips & common mistakes

  • Accrual vs. fixed: Annual leave often uses a fixed yearly entitlement (e.g., 20 days/year), while sick leave may be unlimited or carry-over based on policy.
  • Carryover policy: Decide whether unused leave expires at year-end or rolls to the next year. This is typically managed separately in leave carryover settings.
  • Overlapping types: Some organizations allow only one type of leave per date. Others allow multiple (e.g., an employee can have both "sick" and "approved absence" on the same day). Check your payroll rules.
  • Part-time adjustments: If your organization has part-time employees, consider whether their leave entitlements are pro-rated.

Was this helpful?

More like this